22.2k views
0 votes
Are cryptocurrencies considered as money? Discuss with examples.

1 Answer

6 votes

Final answer:

Cryptocurrencies need to satisfy the requirements of being a store of value, a unit of account, and a medium of exchange to be considered as money. While cryptocurrencies can be used to purchase goods and services, their adoption as a medium of exchange is limited. Cryptocurrencies are not widely accepted as forms of payment for everyday expenses.

Step-by-step explanation:

In order to be considered as money, cryptocurrencies need to satisfy three requirements: they must be valid as a store of value, a unit of account, and a medium of exchange.

While cryptocurrencies like Bitcoin, Ethereum, and Binance Coin can be used to purchase goods and services, their widespread adoption as a medium of exchange is still limited.

Although cryptocurrencies are used in many illicit transactions, they are not commonly accepted as forms of payment for regular purchases like groceries or rent.

User Biki
by
8.9k points